Oil traded near $77 a barrel this evening, as OPEC debated a modest rise in crude production to reassure consumers worried by prices that are near all-time highs and rapidly diminishing stocks.
US light crude was 7 cents up at $77.57 a barrel off highs of $78.32 that placed it within striking distance of its record high of $78.77, on the back of pipeline attacks in the world's fifth-largest crude producer Mexico.
London Brent crude was up 20 cents at $75.68.
Ahead of the OPEC ministerial meeting in Vienna, opinion was divided on the need for output increases, but as talks gathered pace behind close doors the mood had veered in favour of an output increase.
Iraqi Oil Minister Hussain al-Shahristani said as he left the group's meeting that most OPEC oil ministers favoured an oil output increase.
Several OPEC members, notably Iran, Venezuela and Libya, had earlier said they see no need to raise output as current stock levels are comfortable, though an OPEC source said Saudi Arabia and other Gulf Arab states backed a modest rise.
OPEC sources said Saudi Arabia, the United Arab Emirates, Qatar and Kuwait favoured a supply increase of between 500,000 bpd and 1.0 million bpd.
An increase of around 500,000 bpd on top of current OPEC supplies would do something to placate consumer nations without flooding the market and causing a price collapse.
